The digital rupee is a new concept that has been making waves in India. It promises to
revolutionize the way India handles its currency, allowing for quicker and easier transactions
with less hassle. However, there are many pros and cons to consider when it comes to the
digital rupee. On one hand, it could provide a greater level of convenience and security while
also reducing costs. On the other hand, there are a number of potential risks associated with
it, such as the possibility of fraud or cyber-attacks. In this article, we will explore the pros and
cons of the digital rupee and whether or not India is truly ready for such a drastic change.

Pros of e-rupee:
• Reduced costs related to handling and managing cash
• Efficiency and innovation in payment system
• Digital payments are already widely accepted in India and are very convenient. So
digital rupee will also get accepted easily.
• 24/7 availability
• As digital rupee is no longer bound to geographical locations even non-residents can
also hold it to complete cross border financial transactions
• Compatible with POS system at merchants’ stores.
• Value of e-rupee is backed by the full faith and credit of the govt.
• Secure and risk-free
• Payment tracking using blockchain technology
• Zero fees
• It will boost digital economy
• Promotes cashless society
• It prevent counterfeiting of currency, black money and corruption

Cons of e-rupee
• Potential cyber security threat
• Cyber attacks and digital thefts might increase
• The digital currency must collect certain basic information about an individual so that
the person can prove that he’s the holder of that digital currency.
• Lack of privacy – The digital currency must gather basic information about an
individual so the person can verify they hold that particular digital currency. This
sensitive information could be identity details, fingerprints, etc. Additionally, CBDCs
will create a digital footprint even when the phone is turned off–for example, by
paying for food, accommodation, and transportation.
• Security issues – vulnerable to hacking

Although there are many potential cons associated with the digital rupee, there are also a
number of significant benefits. While more study needs to be done to fully understand how it
will impact the financial system in India, it is clear that the pros of the digital rupee outweigh
the cons, making it a convincing option for India’s economy in the future.